December 7, 2021

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Nigeria Owes China $3billion as at 2020 — World Bank

Nigerua China

The total amount Nigeria has so far borrowed from China as of March last year was $3.121 billion (₦1,126.68 trillion at USD/₦361), according to the World Bank.
This amount represents only 3.94 per cent of Nigeria’s total public debt of $79.21 billion as of September 2021.

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Similarly, in terms of external sources of funds, loans from China accounted for 11.28 per cent of the External Debt Stock of USD27.67 billion as of the same date.
According to the document from World Bank, the total borrowing from China of USD3.121 billion as of March 31, 2020, are concessional loans with interest rates of 2.50 per cent per annum with a tenor of 20 years and a grace period (moratorium) of seven years.

‘These terms are compliant with the provisions of Section 41 (1a) of the Fiscal Responsibility Act, 2007. In addition, the low-interest rate reduces the interest cost to the government while the long tenor enables the repayment of the principal sum of the loans over many years. These two benefits, make the provisions for debt service in the annual budget lower than they would otherwise have been if the loans were on commercial terms,’

the document, said.

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